NBA Sponsorship Soars to Record $1.5 Billion in 2023/24 Season
NBA Sponsorship investment among the 30 teams hit more than $1.5 billion for the 2023/24 season, showing a 7% rise compared to the prior season. The most recent NBA Marketing & Partnerships Annual Report from SponsorUnited shows a notable increase in revenue and pinpoints the main sectors driving this growth.
Leading NBA Sponsorship Categories
The top three sectors in NBA Sponsorship spending were finance, technology, and healthcare. The finance industry was in the lead with $247 million, while technology came in at $122 million, and healthcare at $105 million. Technology firms, car manufacturers, alcohol and non-alcoholic beverage companies, and insurance industries collectively accounted for over 50% of the overall increase in NBA Sponsorship.
For the fifth year in a row, alcohol brands held onto the top spot with 290 sponsorship deals totaling $98 million. The Washington Wizards led in number of transactions with 122, followed by the Toronto Raptors with 114 and the New Orleans Pelicans with 109 deals.
The NBA’s sponsorship income has been greatly increased by the introduction of new brand categories, international games, and commercial opportunities such as the In-Season Tournament and LED courts. Sponsorships in technology throughout the league have risen, spurred by the growing demand for digital transformation and cybersecurity solutions.
Financial 💵 companies still dominate the NBA sponsorship space, despite a decline from last year
✍️ @kbadenhausen: https://t.co/y7eDZtJWE5
Overall, NBA team sponsorship revenue is +7% YoY pic.twitter.com/fywgjUFqNk
— Lev Akabas (@LevAkabas) May 21, 2024
Up-and-coming talents such as Victor Wembanyama have attracted more focus to the league. During the 2023/24 regular season, the NBA broke records for total attendance, average attendance, capacity percentage, and sellouts. Bob Lynch, who is the CEO of SponsorUnited, mentioned that the NBA currently has maximum global impact by utilizing creative events and creating new opportunities for brands. This week will see the Eastern and Western Conference Finals continue in the NBA playoffs. The start of the NBA Finals is scheduled for June 6th, expected to generate increased interest from brands and spectators.
The NBA’s strong position as a global sports powerhouse is maintained through the league’s strategic initiatives and the increasing popularity of its players, which drive continued growth in sponsorship revenues.